test bank for business 12th edition by pride 180321030437

Test Bank for Business 12th Edition by Pride

Chapter 2: Being Ethical and Socially Responsible.

1.Define business ethics.
ANS:
Answer not provided.
PTS: 1
OBJ: LO: 2-1
Ethics Defined
KEY:

DIF: Difficulty: Moderate
NAT:
BUSPROG: Ethics

REF: p. 37
TOP: Business

Bloom's: Analysis

2. Why are fairness and honesty in business important ethical concerns? Give
examples.
ANS:
Answer not provided.
PTS: 1
OBJ: LO: 2-2
Issues
KEY:

DIF: Difficulty: Moderate

NAT:
BUSPROG: Ethics

REF: p. 37
TOP: Ethical

Bloom's: Analysis

3. What are the major ethical issues businesspeople face?
ANS:
Answer not provided.
PTS: 1
OBJ: LO: 2-2
Issues
KEY:

DIF: Difficulty: Moderate
NAT:
BUSPROG: Ethics
Bloom's: Evaluation

REF: p. 37
TOP: Ethical


4. What are the three major sets of factors believed to affect ethical behavior in an
organization?
ANS:
Answer not provided.
PTS: 1

DIF: Difficulty: Moderate
OBJ: LO: 2-3
NAT:
BUSPROG: Ethics
TOP: Factors Affecting Ethical Behavior
Knowledge

REF: pp. 39-40
KEY: Bloom's:

5. What are some of the social factors that affect ethical decisions?
ANS:
Answer not provided.
PTS: 1
DIF: Difficulty: Moderate
OBJ: LO: 2-3
NAT:
BUSPROG: Ethics
TOP: Factors Affecting Ethical Behavior
Synthesis

REF: p. 40
KEY: Bloom's:

6. How can the government encourage ethical behavior? Give an example.
ANS:
Answer not provided.
PTS: 1
DIF: Difficulty: Challenging
REF: p. 41

OBJ: LO: 2-4
NAT:
BUSPROG: Ethics
TOP: Encouraging Ethical Behavior
KEY:
Bloom's: Synthesis
7. Why is it easier for managers to make ethical decisions when business is good
and profits are high than when business is not so good and profits are in trouble?
ANS:
Answer not provided.
PTS: 1
DIF: Difficulty: Moderate
REF: p. 41
OBJ: LO: 2-4
NAT:
BUSPROG: Ethics
TOP: Encouraging Ethical Behavior
KEY:
Bloom's: Synthesis
8. Define a code of ethics. Do codes cover every business situation?


ANS:
Answer not provided.
PTS: 1
DIF: Difficulty: Moderate
REF: p. 41
OBJ: LO: 2-4
NAT:
BUSPROG: Ethics

TOP: Encouraging Ethical Behavior
KEY:
Bloom's: Analysis
9. What might be the personal and social consequences of whistle-blowing within
one’s own firm?
ANS:
Answer not provided.
PTS: 1
DIF: Difficulty: Moderate
REF: p. 42
OBJ: LO: 2-4
NAT:
BUSPROG: Ethics
TOP: Encouraging Ethical Behavior
KEY:
Bloom's: Analysis
10. What are a few examples of companies acting socially responsible?
ANS:
Answer not provided.
PTS: 1
DIF: Difficulty: Moderate
REF: pp. 42-44
OBJ: LO: 2-4
NAT:
BUSPROG: Ethics
TOP: Encouraging Ethical Behavior
KEY:
Bloom's: Comprehension
11. Define the doctrine of caveat emptor.
ANS:

Answer not provided.
PTS: 1
DIF: Difficulty: Moderate
REF: p. 48
OBJ: LO: 2-5
NAT:
BUSPROG: Ethics
TOP: The Evolution of Social Responsibility in Business KEY: Bloom's:
Knowledge
12. How do the working conditions at factories today differ from those at factories
of the 1920s?
ANS:
Answer not provided.


PTS: 1
DIF: Difficulty: Moderate
REF: p. 47
OBJ: LO: 2-5
NAT:
BUSPROG: Ethics
TOP: The Evolution of Social Responsibility in Business KEY: Bloom's:
Analysis
13. What are the two views of social responsibility? Explain.
ANS:
Answer not provided.
PTS: 1
DIF: Difficulty: Moderate
OBJ: LO: 2-6
NAT:

BUSPROG: Ethics
TOP: Two Views of Social Responsibility
Analysis

REF: p. 49
KEY: Bloom's:

14. How does the economic model of social responsibility differ from the
socioeconomic model of social responsibility?
ANS:
Answer not provided.
PTS: 1
DIF: Difficulty: Challenging
REF: p. 49
OBJ: LO: 2-6
NAT:
BUSPROG: Ethics
TOP: Two Views of Social Responsibility
KEY: Bloom's:
Evaluation
15. What would proponents of the socioeconomic model argue to support their
position?
ANS:
Answer not provided.
PTS: 1
DIF: Difficulty: Challenging
REF: p. 50
OBJ: LO: 2-6
NAT:
BUSPROG: Ethics

TOP: Two Views of Social Responsibility
KEY: Bloom's:
Synthesis
16. What would opponents of the socioeconomic model argue to support their
position?
ANS:


Answer not provided.
PTS: 1
DIF: Difficulty: Challenging
REF: p. 50
OBJ: LO: 2-6
NAT:
BUSPROG: Ethics
TOP: Two Views of Social Responsibility
KEY: Bloom's:
Synthesis
17. Define consumerism. How have the rights of consumers changed since 1930?
ANS:
Answer not provided.
PTS: 1
DIF: Difficulty: Moderate
OBJ: LO: 2-7
NAT:
BUSPROG: Ethics
Consumerism
KEY:
Bloom's: Analysis

REF: p. 51
TOP:

18. Explain the six basic rights of consumers.
ANS:
Answer not provided.
PTS: 1
DIF: Difficulty: Moderate
OBJ: LO: 2-7
NAT:
BUSPROG: Ethics
Consumerism
KEY:
Bloom's: Knowledge

REF: pp. 51-52
TOP:

19. What actions may consumers take in the marketplace if they do not consider a
firm to be exercising social responsibility?
ANS:
Answer not provided.
PTS: 1
DIF: Difficulty: Moderate
OBJ: LO: 2-7
NAT:
BUSPROG: Ethics
Consumerism
KEY:
Bloom's: Synthesis

20. What are the three major consumerism forces today?
ANS:
Answer not provided.

REF: p. 52
TOP:


PTS: 1
DIF: Difficulty: Moderate
OBJ: LO: 2-7
NAT:
BUSPROG: Ethics
Consumerism
KEY:
Bloom's: Knowledge

REF: p. 52
TOP:

21. What is an affirmative action program? Be certain to detail the objectives of
such programs in your answer.
ANS:
Answer not provided.
PTS: 1
DIF: Difficulty: Moderate
OBJ: LO: 2-8
NAT:
BUSPROG: Ethics
Employment Practices

KEY:
Bloom's: Knowledge

REF: p. 55
TOP:

22. Why did Congress create the Equal Employment Opportunity Commission?
ANS:
Answer not provided.
PTS: 1
DIF: Difficulty: Moderate
OBJ: LO: 2-8
NAT:
BUSPROG: Ethics
Employment Practices
KEY:
Bloom's: Analysis

REF: p. 56
TOP:

23. Why is pollution of concern to most citizens? Why are some businesspeople
particularly concerned about pollution?
ANS:
Answer not provided.
PTS: 1
DIF: Difficulty: Moderate
REF: p. 57
OBJ: LO: 2-9
NAT:

BUSPROG: Ethics
TOP: Concern for the Environment
KEY:
Bloom's: Analysis
24. Describe the four types of pollution. Who should pay for a clean environment?
ANS:


Answer not provided.
PTS: 1
DIF: Difficulty: Moderate
REF: pp. 57-61
OBJ: LO: 2-9
NAT:
BUSPROG: Ethics
TOP: Concern for the Environment
KEY:
Bloom's: Analysis
25. What sort of information should be included in a social audit? Who would
prepare the audit? How would such a document be used?
ANS:
Answer not provided.
PTS: 1
DIF: Difficulty: Challenging
REF: pp. 61-62
OBJ: LO: 2-10 NAT:
BUSPROG: Ethics
TOP: Implementing a Program of Social Responsibility KEY: Bloom's:
Evaluation
26. How should social responsibility programs be funded? Explain your answer.

ANS:
Answer not provided.
PTS: 1
DIF: Difficulty: Moderate
OBJ: LO: 2-10 NAT:
BUSPROG: Ethics
TOP: Implementing a Program of Social Responsibility
Analysis

REF: p. 62
KEY: Bloom's:

27. What are the four steps in developing a program of social responsibility?
ANS:
Answer not provided.
PTS: 1
DIF: Difficulty: Moderate
OBJ: LO: 2-10 NAT:
BUSPROG: Ethics
TOP: Implementing a Program of Social Responsibility
Knowledge
MULTIPLE CHOICE

REF: p. 62
KEY: Bloom's:


Excellent Air Inc. (EAI)
Excellent Air Inc. is a well-known establishment in the airline business. It is
currently one of the top firms in the industry. The company prides itself on good

customer service and being concerned with the broader societal good. EAI
management is concerned not only with doing things right, but also with doing
the right things. Many of its decisions reflect this philosophy. Initially, the
company had a problem with employees reporting their suspicions about
unethical behavior to the press instead of to EAI management. As a result, the
company made sure its employees knew the firm’s guidelines on fixing ethical
issues. EAI also developed a code of conduct based on standards that continue to
be upheld within the company. Since the code of conduct has been put in place,
there have been much fewer ethical violations.
Although employee salaries at EAI are not as high as those at competing firms,
the company experiences very low employee turnover. The firm has created a
corporate culture that not only makes its employees want to stay, but that also
results in higher profits. If EAI can maintain the relationship it has built with its
employees and customers, it will have little difficulty keeping up its remarkable
success.
28. Refer to Excellent Air Inc. The principles that EAI chooses to pride itself on
show that the company has
a. a moral minority.
b. cultural diversity.
c. social responsibility.
d. caveat emptor.
e. a social audit.

ANS:
C
PTS:
REF: p. 47
OBJ: LO: 2-4
TOP: Scenario Questions

1
DIF:
NAT:
KEY:

Difficulty: Moderate
BUSPROG: Ethics
Bloom's: Analysis

29. Refer to Excellent Air Inc. Initially, employees were not willing to go to EAI
management with ethical issues but would instead report them to the press. This
is an example of
a. whistle-blowing.
b. a social audit.
c. poor employees.
d. opportunity emptor.
e. a narc.


ANS:
A
PTS:
REF: p. 42
OBJ: LO: 2-4
TOP: Scenario Questions

1
DIF:
NAT:
KEY:

Difficulty: Easy
BUSPROG: Ethics
Bloom's: Analysis

30. Refer to Excellent Air Inc. To fix the ethical issue problems, EAI management
should have implemented all of the following guidelines for making ethical
decisions except which one?
a. Listen and learn.
b. Identify the ethical issue.
c. Create and analyze options.
d. Create an industry benchmark.
e. Explain your decision and resolve any differences that arise.

ANS:
D
PTS:
REF: p. 44
OBJ: LO: 2-4
TOP: Scenario Questions

1
DIF:
NAT:
KEY:

Difficulty: Moderate
BUSPROG: Ethics
Bloom's: Analysis

31. Refer to Excellent Air Inc. Since the company created its code of conduct,
employees have limited ____, or amount of freedom to perform an unethical act.
a. time
b. responsibility
c. moral dilemmas
d. unethical options
e. opportunity

ANS:
E
PTS:
REF: p. 40
OBJ: LO: 2-3
TOP: Scenario Questions

1
DIF:
NAT:
KEY:

Difficulty: Challenging
BUSPROG: Ethics
Bloom's: Evaluation

32. Refer to Excellent Air Inc. EAI’s creation of its code of conduct demonstrated
its application of moral standards to business situations, which is also known as
a. moral responsibility.
b. social consciousness.
c. social responsibility.
d. moral consciousness.

e. business ethics.


ANS:
E
PTS:
REF: p. 37
OBJ: LO: 2-1
TOP: Scenario Questions

1
DIF:
NAT:
KEY:

Difficulty: Moderate
BUSPROG: Ethics
Bloom's: Analysis

XYZ Coffee
Nancy is a highly respected person within her community. She is Hispanic in a
largely Caucasian-populated area. Since Nancy was looking for a new job, she
went to a new company in the area called XYZ Coffee, where she applied for a
position. After the interview, Nancy felt confident that she would be hired
because of her qualifications. However, she did not get a call back. Initially,
Nancy did not think twice about it, but she felt differently when she visited the
same coffee store later to purchase something for a friend. The company had
hired an inexperienced Caucasian male with a history of unemployment. At this
point, Nancy was quite aggravated, but she left the issue alone.
She ended up asking an associate for an espresso machine. The employee

informed Nancy where the machine was located and retrieved it for her. Nancy
asked if there were any other espresso machines of higher quality. When the
associate said no, Nancy purchased the item and left. After she gave the gift to
her friend, she noticed a much better quality espresso machine that someone else
had given her. Nancy asked where they had purchased it, and they responded,
“XYZ Coffee.”
33. Refer to XYZ Coffee. Nancy is a(n) ____ within her community.
a. outcast
b. active member
c. minority


d. bad influence
e. unethical person

ANS:
C
PTS:
REF: p. 55
OBJ: LO: 2-8
TOP: Scenario Questions

1
DIF:
NAT:
KEY:

Difficulty: Easy
BUSPROG: Ethics
Bloom's: Knowledge

34. Refer to XYZ Coffee. If Nancy were Caucasian and the company employees
were mostly Hispanic, the way she was treated would be referred to as
a. affirmative action.
b. legal discrimination.
c. simply unethical.
d. reverse discrimination.
e. a perfect match.

ANS:
D
PTS:
REF: p. 56
OBJ: LO: 2-8
TOP: Scenario Questions

1
DIF:
NAT:
KEY:

Difficulty: Moderate
BUSPROG: Ethics
Bloom's: Analysis

35. Refer to XYZ Coffee. Before he got his job, another description for the
employee who was hired over Nancy would be
a. hard-core unemployed.
b. minority.
c. whistle-blower.

d. caveat emptor.
e. consumerist.

ANS:
A
PTS:
REF: pp. 56-57 OBJ: LO: 2-8
TOP: Scenario Questions

1
DIF:
NAT:
KEY:

Difficulty: Easy
BUSPROG: Ethics
Bloom's: Knowledge

36. Refer to XYZ Coffee. Which basic consumer right was infringed when Nancy
bought the espresso machine?
a. The right to safety
b. The right to be heard
c. The right to service
d. The right to respect
e. The right to choose


ANS:
E
PTS:

REF: pp. 51-52 OBJ: LO: 2-7
TOP: Scenario Questions

1
DIF:
NAT:
KEY:

Difficulty: Moderate
BUSPROG: Ethics
Bloom's: Analysis

37. Refer to XYZ Coffee. Nancy’s right to product options in buying an espresso
machine is known as
a. caveat emptor.
b. consumerism.
c. affirmative action.
d. social audit.
e. business ethics.

ANS:
B
PTS:
REF: p. 51
OBJ: LO: 2-7
TOP: Scenario Questions

1
DIF:
NAT:

KEY:

Difficulty: Challenging
BUSPROG: Ethics
Bloom's: Analysis

38. The Jackson Springs Coal Mine recently discovered that the mine was
contaminating the local drinking water. Cleaning up the mine and the
surrounding areas would probably bankrupt the mine, causing the loss of
hundreds of local jobs, but doing nothing would endanger the health of the
community. The mine faces a serious ____ decision.
a. business
b. ethical
c. environmental
d. social responsibility
e. cost

ANS:
B
PTS:
REF: p. 37
OBJ: LO: 2-1
TOP: Business Ethics Defined

1
DIF:
NAT:
KEY:

Difficulty: Challenging

BUSPROG: Ethics
Bloom's: Evaluation

39. Business ethics
a. is laws and regulations that govern business.
b. is the application of moral standards to business situations.
c. do not vary from one person to another.
d. is most important for advertising agencies.
e. is well-defined rules for appropriate business behavior.


ANS:
B
PTS:
REF: p. 37
OBJ: LO: 2-1
TOP: Business Ethics Defined

1
DIF:
NAT:
KEY:

Difficulty: Easy
BUSPROG: Ethics
Bloom's: Knowledge

40. The study of the morality of choices made by people is known as
a. ethics.
b. business ethics.

c. freedom of choice.
d. moral aptitude.
e. standard of behavior.

ANS:
A
PTS:
REF: p. 37
OBJ: LO: 2-1
TOP: Business Ethics Defined

1
DIF:
NAT:
KEY:

Difficulty: Easy
BUSPROG: Ethics
Bloom's: Knowledge

41. Brant promised to repair Carolyn’s car on Thursday. After picking up the
necessary part at a junkyard, he discovered he could not do the job after all and
that the junkyard would not buy back the part. Carolyn does not know about
these developments. However, she thinks Brant will be finished with her car
sometime today. What should Brant do?
a. Try to repair the car even though he does not really know how.
b. Try to repair the car so he can at least get his money’s worth out of it.
c. Call Carolyn to inform her of the problem, and recommend a reputable
repair shop.
d. Fake an emergency and contact Carolyn on Monday.

e. Stall for time to read up on car repairs so he can practice on Carolyn’s
car.

ANS:
C
PTS:
REF: p. 38
OBJ: LO: 2-2
TOP: Ethical Issues

1
DIF:
NAT:
KEY:

42. Customers expect a firm’s products to
a. boost sales.
b. be profitable.
c. earn a reasonable return on investment.

Difficulty: Challenging
BUSPROG: Ethics
Bloom's: Evaluation


d. be available everywhere.
e. be safe, reliable, and reasonably priced.

ANS:
E

PTS:
REF: p. 38
OBJ: LO: 2-2
TOP: Ethical Issues

1
DIF:
NAT:
KEY:

Difficulty: Easy
BUSPROG: Ethics
Bloom's: Knowledge

43. Investors expect management to do all of the following except
a. consult them on ethical decisions.
b. increase sales.
c. boost the company’s profit.
d. increase the return to the investor.
e. make sensible financial decisions.

ANS:
A
PTS:
REF: p. 38
OBJ: LO: 2-2
TOP: Ethical Issues
Bloom's: Analysis

1

DIF:
NAT:
KEY:

Difficulty: Moderate
BUSPROG: Ethics
Bloom's: Knowledge |

44. Tony Shinn is applying for a mortgage to purchase his first home. His credit
rating is mediocre due to several late payments on his credit cards and car loan.
He is upset because his friend Jerry was offered an interest rate 3 percent less
than what Tony was offered by the same mortgage company. This mortgage
company’s actions were
a. unethical both Tony and Jerry should have been charged the same
interest rates, regardless of their credit histories.
b. ethical this is just a part of doing business because credit history is an
important indicator of future payments.
c. illegal subjective factors may not be used when determining which
credit offers may be extended to certain customers.
d. unethical if Tony is a minority and Jerry is not.
e. unethical and illegal customers must all be treated the same.

ANS:
B
PTS:
REF: p. 38
OBJ: LO: 2-2
TOP: Ethical Issues

1

DIF:
NAT:
KEY:

Difficulty: Challenging
BUSPROG: Ethics
Bloom's: Evaluation


45. Metabo-Miracle offers a guaranteed weight loss of 10 pounds in one week
without dieting or exercise. Thousands of customers purchase the products and
about 200 call in with complaints that the product was ineffective. What action
should Metabo-Miracle take?
a. It should immediately remove its products from the market, fully
refund the thousands of customers’ money, and close its business.
b. It should use persuasive techniques to get the 200 disappointed
customers to try the product again each time it fails in order to
decrease refunds.
c. It should explain to the customers that they misused the product and try
to sell them more of the product.
d. It should discuss the product failure with the customers and then
provide them with a full refund of their purchase price.
e. It should ignore the customers’ complaints and hope they will tire of
calling and writing letters.

ANS:
D
PTS:
REF: p. 38
OBJ: LO: 2-2

TOP: Ethical Issues

1
DIF:
NAT:
KEY:

Difficulty: Challenging
BUSPROG: Ethics
Bloom's: Evaluation

46. Ranee is a businessperson who works for a successful and admired Fortune 500
company. About how often is Ranee likely to encounter ethical issues in the
workplace?
a. Once or twice during her career
b. About two to three times per year
c. Approximately once a month
d. Almost every week
e. On a daily basis

ANS:
E
PTS:
REF: p. 38
OBJ: LO: 2-2
TOP: Ethical Issues

1
DIF:
NAT:

KEY:

Difficulty: Challenging
BUSPROG: Ethics
Bloom's: Evaluation


47. Mattel, the maker of Barbie dolls, frequently shows television ads aimed at
children on Saturday mornings, when many children are known to watch
cartoons. Some of these ads mix cartoon-type animation and “real” shots of the
dolls so that it is sometimes difficult for even an adult to determine what the doll
can or cannot do. This most likely represents
a. a conflict of interest.
b. an ethical problem because children may be deceived about what
Barbie can do.
c. an ethical concern for many creditors of Mattel.
d. illegal payoffs, if parents are getting more than they actually know they
are paying for.
e. that Mattel employees need better working conditions and higher pay.

ANS:
B
PTS:
REF: p. 38
OBJ: LO: 2-2
TOP: Ethical Issues

1
DIF:
NAT:

KEY:

Difficulty: Challenging
BUSPROG: Ethics
Bloom's: Evaluation

48. Employees of Copley Pharmaceutical, Inc., falsified drug manufacturers’ reports
to the FDA. These actions taken by Copley’s employees were
a. moral.
b. normal.
c. in the best interests of the shareholders.
d. unethical.
e. in the best interests of the employees.

ANS:
D
PTS:
REF: p. 38
OBJ: LO: 2-2
TOP: Ethical Issues

1
DIF:
NAT:
KEY:

Difficulty: Moderate
BUSPROG: Ethics
Bloom's: Analysis

49. You are the executive vice president for Cooper Tire, the sixth largest U.S. tire
maker. You have the responsibility to locate land for a new distribution center in
Mississippi, and you own over 1,000 acres of land near one site in Tupelo. This
could create for you
a. a code of ethics.
b. the usual decision-making problems of cost versus benefit to Cooper
Tire.
c. a wonderful, ethical opportunity to make a lot of money.
d. an ethical opportunity to move the distribution center to your
hometown.
e. a conflict of interest.


ANS:
E
PTS:
REF: p. 39
OBJ: LO: 2-2
TOP: Ethical Issues

1
DIF:
NAT:
KEY:

Difficulty: Moderate
BUSPROG: Ethics
Bloom's: Analysis

50. Taking credit for others’ ideas or work or not meeting one’s commitments in a

mutual agreement are ethical issues concerning
a. fairness and honesty.
b. organizational relationships.
c. conflict of interest.
d. communications.
e. freedom of choice.

ANS:
B
PTS:
REF: p. 38
OBJ: LO: 2-2
TOP: Ethical Issues

1
DIF:
NAT:
KEY:

Difficulty: Moderate
BUSPROG: Ethics
Bloom's: Analysis

51. Bribes are
a. unethical.
b. ethical only under certain circumstances.
c. uncommon in many foreign countries.
d. economic returns.
e. ethical.

ANS:
A
PTS:
REF: p. 40
OBJ: LO: 2-2
TOP: Ethical Issues

1
DIF:
NAT:
KEY:

Difficulty: Easy
BUSPROG: Ethics
Bloom's: Knowledge

52. When medical research indicated that a high-fiber diet might help reduce one’s
risk of colon cancer, a few producers of fiber cereals suggested in their
advertisements that if you eat fiber cereal, you will not get cancer. This is an
example of
a. an unethical organizational relationship.
b. a conflict of interest.
c. social responsibility.
d. unethical communications.
e. ethical persuasion.


ANS:
D
PTS:

REF: p. 39
OBJ: LO: 2-2
TOP: Ethical Issues

1
DIF:
NAT:
KEY:

Difficulty: Challenging
BUSPROG: Ethics
Bloom's: Analysis

53. Publisher’s Clearing House has a policy that no employees or their family
members are eligible to win the big sweepstakes. This policy was likely
implemented to
a. shrink the pool of possible winners, which increases each individual’s
odds of winning.
b. prevent employees from accepting gifts or bribes from other
employees.
c. encourage more magazine sales.
d. avoid an apparent conflict of interest.
e. satisfy the families of Publisher’s Clearing House employees.

ANS:
D
PTS:
REF: p. 40
OBJ: LO: 2-2
TOP: Ethical Issues

1
DIF:
NAT:
KEY:

Difficulty: Challenging
BUSPROG: Ethics
Bloom's: Evaluation

54. You are the decision maker for purchasing office equipment in your
organization. One sales representative privately offers you season tickets to the
Chicago Bears if you help him out. This tactic is
a. a corporate discount.
b. a common business practice.
c. a bribe.
d. personal selling.
e. ethical.

ANS:
C
PTS:
REF: p. 41
OBJ: LO: 2-2
TOP: Ethical Issues

1
DIF:
NAT:
KEY:

Difficulty: Moderate
BUSPROG: Ethics
Bloom's: Analysis

55. A large computer manufacturer forbids its executives and managers from
serving as directors or officers for Intel Corporation or any other corporation
from which it might purchase component parts. The company is trying to
prevent
a. their employees from having other jobs.
b. a conflict of interest.


c. trade secrets from being revealed.
d. losing its executives to other organizations.
e. fairness and honesty.

ANS:
B
PTS:
REF: p. 39
OBJ: LO: 2-2
TOP: Ethical Issues

1
DIF:
NAT:
KEY:

Difficulty: Challenging

BUSPROG: Ethics
Bloom's: Analysis

56. For health-related companies such as Weight Watchers, one of the most frequent
ethical issues related to communications that they face is
a. deception.
b. providing too much information.
c. seeking FDA approval.
d. experiments on animals.
e. safe packaging.

ANS:
A
PTS:
REF: p. 39
OBJ: LO: 2-2
TOP: Ethical Issues

1
DIF:
NAT:
KEY:

Difficulty: Moderate
BUSPROG: Ethics
Bloom's: Analysis

57. What specific area of business communications presents ethical questions by
sometimes containing false and misleading messages for adults and especially
children?

a. Press releases
b. Newspaper articles
c. Consumer Reports’ rankings
d. Advertising
e. Audited financial reports

ANS:
D
PTS:
REF: p. 39
OBJ: LO: 2-2
TOP: Ethical Issues

1
DIF:
NAT:
KEY:

Difficulty: Moderate
BUSPROG: Ethics
Bloom's: Analysis

58. The ____ factor affecting ethical behavior includes one’s moral values and
central attitudes.
a. individual
b. social
c. opportunity
d. moral

e. ethical

ANS:
A
PTS:
1
DIF:
REF: p. 40
OBJ: LO: 2-3
NAT:
TOP: Factors Affecting Ethical Behavior
Knowledge

Difficulty: Easy
BUSPROG: Ethics
KEY: Bloom's:

59. At Ledbetter Industries, employees are allowed one-hour lunches, but it has
become common that most stroll back fifteen minutes late every day. The factor
affecting the ethical behavior of Ledbetter’s employees is
a. individual.
b. social.
c. opportunity.
d. code of ethics.
e. whistle-blowing.

ANS:
B
PTS:
1

DIF:
REF: p. 40
OBJ: LO: 2-3
NAT:
TOP: Factors Affecting Ethical Behavior
Analysis

Difficulty: Moderate
BUSPROG: Ethics
KEY: Bloom's:

60. All of the following are factors that affect the level of ethical behavior in an
organization except
a. individual factors.
b. social factors.
c. opportunity.
d. demographic factors.
e. moral values.

ANS:
D
PTS:
1
DIF:
REF: pp. 39-40 OBJ: LO: 2-3
NAT:
TOP: Factors Affecting Ethical Behavior
Knowledge

Difficulty: Easy

BUSPROG: Ethics
KEY: Bloom's:


61. Publix, a southeastern grocery store chain, has signs saying that tips are not
accepted and employees are all informed of this policy. However, many of the
baggers commonly accept tips from customers anyway and they often compare
to see who makes the most. The factor affecting the ethical behavior of Publix’s
employees is
a. individual.
b. social.
c. opportunity.
d. demographic.
e. internal code.

ANS:
B
PTS:
1
DIF:
REF: p. 40
OBJ: LO: 2-3
NAT:
TOP: Factors Affecting Ethical Behavior
Evaluation

Difficulty: Challenging
BUSPROG: Ethics
KEY: Bloom's:

62. What are the three sets of factors that influence the standards of behavior in an
organization?
a. Organizational norms, circumstances, morals
b. Peer pressure, attitudes, social factors
c. Historical factors, management attitudes, opportunity
d. Opportunity, individual factors, social factors
e. Financial factors, opportunity, morals

ANS:
D
PTS:
1
DIF:
REF: p. 40
OBJ: LO: 2-3
NAT:
TOP: Factors Affecting Ethical Behavior
Analysis

Difficulty: Moderate
BUSPROG: Ethics
KEY: Bloom's:

63. At Victoria’s Secret, managerial approval is required whenever an employee
makes a purchase at the store using an employee discount. Which factor
affecting ethical behavior is Victoria’s Secret seeking to control?
a. Individual
b. Social
c. Moral
d. Circumstantial

e. Opportunity


ANS:
E
PTS:
1
DIF:
REF: p. 40
OBJ: LO: 2-3
NAT:
TOP: Factors Affecting Ethical Behavior
Analysis

Difficulty: Moderate
BUSPROG: Ethics
KEY: Bloom's:

64. Ed works in a position where there is very little supervision. In fact, although he
considers himself ethical, he figures he could go away for a week without
anyone noticing. Which general set of factors is most likely to influence Ed’s
ethical behavior?
a. Individual
b. Social
c. Moral
d. Circumstantial
e. Opportunity

ANS:
E

PTS:
1
DIF:
REF: p. 40
OBJ: LO: 2-3
NAT:
TOP: Factors Affecting Ethical Behavior
Analysis

Difficulty: Challenging
BUSPROG: Ethics
KEY: Bloom's:

65. If a company deals with violations of its ethical codes ____, the opportunity to
be unethical will be reduced.
a. leisurely and lightly
b. firmly and consistently
c. on a case-by-case basis
d. quietly and erratically
e. frequently and severely

ANS:
B
PTS:
1
DIF:
REF: p. 40
OBJ: LO: 2-3
NAT:
TOP: Factors Affecting Ethical Behavior

Analysis

Difficulty: Moderate
BUSPROG: Ethics
KEY: Bloom's:

66. Suppose that when making decisions with ethical content, an executive for the
Coca-Cola Company always considers whether she would be comfortable
explaining her decision after the fact to a national TV audience. Such thinking
a. is clearly a way to shift responsibility and should be avoided.
b. encourages ethical decision making.
c. is likely to be illegal.
d. would encourage legal payoffs to university officials for making Coke


the official on-campus drink.
e. violates several international laws.

ANS:
B
PTS:
1
DIF:
REF: p. 41
OBJ: LO: 2-4
NAT:
TOP: Encouraging Ethical Behavior
KEY:

Difficulty: Challenging

BUSPROG: Ethics
Bloom's: Analysis

67. Rose Martinez walked into her office and found a large, extravagant bouquet on
her desk. Before she had time to read the card, her secretary said it was from Mr.
Tanner at Zero Corporation. The secretary knew Mr. Tanner was trying to
negotiate a sales deal with the company. Thus, she remarked that the beautiful
flowers should help Ms. Martinez make her decision. Although Ms. Martinez
did not know how to respond to Mr. Tanner’s gift, she thought an answer might
be in her company’s
a. sales procedures.
b. sales manual.
c. employee handbook.
d. code of ethics.
e. sales training tapes.

ANS:
D
PTS:
1
DIF:
REF: p. 41
OBJ: LO: 2-4
NAT:
TOP: Encouraging Ethical Behavior
KEY:

Difficulty: Challenging
BUSPROG: Ethics
Bloom's: Analysis

68. What is probably the most effective way for a company to encourage ethical
behavior?
a. Hire employees who are ethical and in agreement with the company’s
views.
b. Have ethics training sessions for interested employees.
c. Threaten employees with immediate termination for unethical
behavior.
d. Post signs discouraging sexual harassment and discrimination.
e. Develop and enforce a written code of ethics for the organization.

ANS:
E
PTS:
1
DIF:
REF: p. 41
OBJ: LO: 2-4
NAT:
TOP: Encouraging Ethical Behavior
KEY:

Difficulty: Moderate
BUSPROG: Ethics
Bloom's: Analysis


69. The American Apparel Manufacturers Association exerts pressure on its
members to comply with the ethical standards of the industry and provides
information and benefits for textile companies. This company is an example of

a(n)
a. regulatory agency.
b. government agency.
c. trade association.
d. industry organization.
e. membership club.

ANS:
C
PTS:
1
DIF:
REF: p. 41
OBJ: LO: 2-4
NAT:
TOP: Encouraging Ethical Behavior
KEY:

Difficulty: Challenging
BUSPROG: Ethics
Bloom's: Analysis

70. The Healthcare Financial Management Association expects its code of ethics to
provide all of the following benefits except
a. create an outline for ethical policies and standards.
b. encourage employees to behave ethically.
c. communicate the company’s expectations to the employees.
d. describe what to do in every ethical situation.
e. detail the punishment that will be given for an ethical breech.

ANS:
D
PTS:
1
DIF:
REF: p. 41
OBJ: LO: 2-4
NAT:
TOP: Encouraging Ethical Behavior
KEY:

Difficulty: Easy
BUSPROG: Ethics
Bloom's: Analysis

71. As a result of the Bhopal incident, in which a toxic gas leak killed thousands of
people, leading officials at Union Carbide have dedicated themselves to
operating their business ethically. Ways in which the company can encourage
ethical behavior include all of the following except
a. formalizing a corporate code of ethics.
b. encouraging whistle-blowing.
c. holding ethics training sessions.
d. requiring that ethical behavior be profitable.
e. promoting open decision making.

ANS:
D
PTS:
1
DIF:

REF: pp. 41-44 OBJ: LO: 2-4
NAT:
TOP: Encouraging Ethical Behavior
KEY:

Difficulty: Challenging
BUSPROG: Ethics
Bloom's: Evaluation


72. The human resources manager at Swingline, Inc., a manufacturer of office
staplers, wants to encourage a more ethical climate in the organization. A likely
way for Swingline to do this is to
a. make certain that Swingline has a company code of ethics that is
enforced.
b. add an ethics department whose job is to constantly watch employees
to be certain they behave.
c. develop a system of security cameras, telephone monitoring, and oneway mirrors to be certain that employees behave appropriately.
d. avoid any mention of ethics to employees so that they will not think
unethical thoughts.
e. do none of the above. All of these practices are illegal because they
take away an employee’s constitutional right of free choice.

ANS:
A
PTS:
1
DIF:
REF: p. 41
OBJ: LO: 2-4

NAT:
TOP: Encouraging Ethical Behavior
KEY:

Difficulty: Challenging
BUSPROG: Ethics
Bloom's: Evaluation

73. Megan Miller is an ethics officer at a large financial institution. She likely
performs all of the following duties except
a. coordinating ethical conduct.
b. providing advice to employees when they are uncertain.
c. giving top management advice about their decisions.
d. encouraging all employees to be whistle-blowers.
e. determining the punishment for ethical violations.

ANS:
D
PTS:
1
DIF:
REF: p. 41
OBJ: LO: 2-4
NAT:
TOP: Encouraging Ethical Behavior
KEY:

Difficulty: Moderate
BUSPROG: Ethics
Bloom's: Analysis

74. Which of the following is the most effective way to encourage ethical business
behavior?
a. Pass government regulations.
b. Provide guidelines from trade associations.
c. Include an ethics clause in a labor contract.
d. Establish and enforce a corporate code of ethics.
e. Rely on employees to blow the whistle.